What credit cards do you use?

That cash you are getting back is built in, pre-paid, and I personally would not ever rely on CC protection as a reason to use a CC, but I do agree with you about carrying a CC balance. I used to agree that cards can be a tool, but not any more. This is not to be confused with a debit card which I find to be a much more useful tool. Since the banking melt-down CCs are looked at by the banks as a way to load up fees, and they have done a great job of it before the new regulations kick in to stop them. Next up on the chopping block will be free checking, and probably interest-bearing checking, as these are not funds the banks can count on as part of their lending reserves.

Sometimes I use the CC up front and then I borrow against my 401k, pay off the cc balance, and pay myself back at a higher interest rate than I can otherwise get from money market.

One thing is for sure, the use of CC will only get more and more expensive.

What?!?! You think they are really giving you free money? ;-) Most likely they are charging you in fees and then giving a small rebate to make you feel good about spending money you don't have. :-)

I'm not saying the debit card is a replacement for a cc, or vice-versa. All I'm saying is keep watching your card statements for new fees. If it works for you, and I can certainly understand from the POV of running a business, then that's great. People have been ripped off on both sided of cc transactions, so I myself don't place too much credence in the protection offered and do my own due diligence.

Enjoy your CC, Kijanki. You obviously put more across yours than I ever would. I'll say it again, nothing is free. If the cc company is giving you something it is being paid for somewhere. You can bet your ass on it.